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Referring candidates to payroll providers post-GDPR


It will have escaped no-one’s notice that GDPR is now in force, as of 25th of May.

One concern facing recruitment agencies is whether it is still ok to pass candidate details over to their preferred umbrella supplier or contractor accountant, to facilitate their payments.

The short answer is yes! But let’s put that into context. Recruitment agencies are data-driven businesses, which source, process and use personal data every day, whether it relates to candidates, clients, suppliers or other 3rd parties.

The key change GDPR brings for recruitment businesses is having explicit permission or a legal basis to process an individual’s personal data.

This applies to all areas of GDPR, including who you share that data with.

Three steps to referring compliantly

There are three steps to ensuring it is business as usual when it comes to referring your candidates over to your preferred suppliers.

In fact, it’s highly likely you already have this covered in the course of your GDPR preparations.

1. Your privacy policy

Your privacy policy should explain how individuals’ data may be used and shared, to include referring them to selected suppliers for the purposes of payroll.

Here is some suggested wording:

Example 1

"We will use the information we receive from you to enable selected third parties to provide you with information about goods or services they offer".

Example 2

"We may share your personal data with third party service providers for the purposes of processing your payroll".

Example 3

"We may share your data with relevant third party service providers (partners) including payroll service providers".

You should also state the name and contact details of any third party supplier with whom you may share individuals’ personal data.

2. Capturing consent

You should ensure you get consent from candidates up front. Any online data capture forms should include an “opt-in” button. You should also clearly explain which suppliers you may pass their data to.

Tell candidates from the outset that you will be passing on their data to assist with their payroll, and what details you will be sharing. .

3. Depend on your PSL

Only work with umbrella companies and other providers you are 100% sure of.

The Freelancer Contractor Services Association has done the hard work for you. The best way to achieve a robust PSL is to limit your list to FCSA accredited members.

Accredited members go through a rigorous annual compliance audit which is disclosed to HMRC, with all areas of their business put under the microscope.

You can find a list of FCSA accredited members here.

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Article by Lynne Gowers
Senior Marketing Executive, Liquid Friday.

Tagged With: candidates, HMRC, GDPR, Recruitment Business Owner, Candidate, Personal Data, Referring Candidates, Candidate Personal Data, Privacy Policy, Payroll

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